The Advisory Board Consulting Agreement is essential when companies seek to formally engage experienced professionals for strategic guidance and industry expertise. This document, governed by U.S. law, establishes a clear framework for the advisory relationship, protecting both the company's interests and the advisor's independent status. It typically includes detailed provisions for service scope, compensation, confidentiality, intellectual property rights, and liability protection. Companies use this agreement to ensure compliance with federal and state regulations while maintaining flexibility in their advisory relationships. The agreement is particularly important for startups and growing companies that need specialized expertise without the commitment of full-time employment.
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Key Requirements PROMPT example:
Advisory Board Consulting Agreement
"Need an Advisory Board Consulting Agreement for a tech startup engaging a senior industry expert who will provide quarterly strategic guidance and receive both cash compensation and stock options, with the agreement starting January 2025."
1. Parties: Identifies the company and the advisor, including full legal names and addresses
2. Background: Explains the context of the agreement and the company's desire to engage the advisor
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Services: Details the advisor's appointment to the advisory board and scope of services
5. Term and Termination: Specifies duration of engagement and termination provisions
6. Compensation: Outlines fees, expenses, and payment terms
7. Confidentiality: Defines confidential information and protection obligations
8. Independent Contractor Status: Clarifies the advisor's status as an independent contractor
9. Governing Law: Specifies applicable law and jurisdiction
1. Equity Compensation: Details any stock options or equity grants when advisor receives equity compensation
2. Intellectual Property Rights: Addresses ownership of IP created during service when advisor may create IP during service
3. Non-Compete: Restricts advisor's involvement with competitors when competitive concerns exist
4. Insurance: Specifies required insurance coverage when advisor needs professional liability insurance
1. Schedule A - Services: Detailed description of advisory services
2. Schedule B - Compensation: Detailed compensation terms including payment schedule
3. Schedule C - Confidential Information: Specific items considered confidential
4. Exhibit A - Stock Option Agreement: Terms of equity compensation if applicable
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